Question 20 A donor contributed $100,000 in cash to Goodwill Industries in 2020 The donor specified that the contribution be held as a permanent endowment, and income from investment of the contribution be used for job training programs Goodwill Industries invested the $100,000 in securities in 2020 During 2021, investment income of $3,000 was received in cash, and $2,500 was used for job training programs How does Goodwill Industries report this on its 2021 statement of activities A $3,000 investment income increases net assets without donor restrictions $2,500 expense reduces net assets with donor restrictions B $3,000 investment income increases net assets with donor restrictions $3,000 net assets released from use restrictions decreases net assets with donor restrictions and increases net assets without donor restrictions $2,500 expense reduces net assets without donor restrictions C $3,000 investment income increases net assets without donor restrictions $2,500 expense decreases net assets without donor restrictions D $3,000 investment income increases net assets with donor restrictions $2,500 net assets released from use restrictions decreases net assets with donor restrictions and increases net assets without donor restrictions $2,500 expense reduces net assets without donor restrictions

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 14, 2024

Question 20 A donor contributed $100,000 in cash to Goodwill Industries in 2020. The donor specified that the contribution be held as a permanent endowment,

Question 20

A donor contributed $100,000 in cash to Goodwill Industries in 2020. The donor specified that the contribution be held as a permanent endowment, and income from investment of the contribution be used for job training programs. Goodwill Industries invested the $100,000 in securities in 2020. During 2021, investment income of $3,000 was received in cash, and $2,500 was used for job training programs. How does Goodwill Industries report this on its 2021 statement of activities?

	A.	$3,000 investment income increases net assets without donor restrictions; $2,500 expense reduces net assets with donor restrictions.
	B.	$3,000 investment income increases net assets with donor restrictions; $3,000 net assets released from use restrictions decreases net assets with donor restrictions and increases net assets without donor restrictions; $2,500 expense reduces net assets without donor restrictions.
	C.	$3,000 investment income increases net assets without donor restrictions; $2,500 expense decreases net assets without donor restrictions.
	D.	$3,000 investment income increases net assets with donor restrictions; $2,500 net assets released from use restrictions decreases net assets with donor restrictions and increases net assets without donor restrictions; $2,500 expense reduces net assets without donor restrictions.